Evraz Group completes the acquisition of Ukrainian assets
September 11, 2008 - Evraz Group S.A. (LSE: EVR) (“Evraz”) announces completion of the second stage of the acquisition of select production assets in Ukraine.
As a second stage, 4,195,150 shares in Evraz (“New Shares”) have been issued in favour of Lanebrook Limited in exchange for 48.6% of Palmrose Limited, the owner of the following Ukrainian assets:
- a 99.25% share holding in the Sukha Balka iron ore mining and processing complex;
- a 95.57% share holding in the Dnepropetrovsk Iron and Steel Works; and
- share holdings in three coking plants (94.37% of Bagley Coke, 98.65% of Dnepropetrovsk Coke and 93.86% of shares outstanding of Dneprodzerzhinsk Coke).
The issuance of the New Shares and the resulting share capital increase have been approved by Evraz’s Board of Directors and, in a separate vote, by the Board’s Non-Executive Directors Committee who took into account the independent valuation and fairness opinion prepared by Renaissance Capital. The valuation methods and procedures performed on the valuation of the contribution in kind were confirmed in a Contribution in Kind report issued by an independent auditor, PricewaterhouseCoopers S.à r.l., as required by the Luxembourg legislation.
Evraz now owns 100% of Palmrose Limited though it has effectively controlled the latter since April 14, 2008, when it completed the acquisition of the first 51.4% of Palmrose for cash consideration.
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